Market Closes - January 12, 2017

CBOT futures closed near steady in corn to sharply higher in soybeans and soybean meal in response to the midday USDA crop reports. USDA’s final soybean production estimate is 54 million bushels lower than last month’s; also the 16/17 ending stocks number dropped 60 million to 420 million bushels. World Ending Stocks fell from 82.85 to 82.32 MMT. US Corn production was lowered 78 million bushels and 16/17 ending YC stocks was lowered 48 million from the December report.

Wheat futures closed strongly higher, supported by lower-than-expected winter wheat seedings reported today at 32.38 million acres, down 10% from 2015 and the 2nd lowest on record. Kentucky producers seeded 550,000 acres, up 40,000 from 2015, but 10,000 less than the 2014 acreage.

Cattle futures closed lower but well off the lows set in the first 90 minutes of trading. Selling was encouraged by the past week’s sharp drop in boxed beef values which wiped out packer’s nice margins. Today, Choice beef edged .29 lower to 189.10, but Select fell 1.40 to 186.55.

Today, USDA reported 2016 Kentucky burley tobacco production is estimated at 107 million pounds, down three percent from the October forecast and up two percent from 2015. Yield was estimated at 1,750 pounds per acre, unchanged from October forecast and down 50 pounds from the 2015 crop. Harvested acreage was estimated at 61,000 acres, up 3,000 acres from last year's crop.

For the burley producing states production is estimated at 140 million pounds, down three percent from last year. Burley growers plan to harvest 80,000 acres, up one percent from 2015. Yields were estimated at 1,747 pounds per acre, down 87 pounds from last year.

DARK TOBACCO PRODUCTION

Production of Kentucky dark fire-cured tobacco is estimated at 21.9 million pounds, down 31 percent from the previous year. Dark air-cured tobacco production is estimated at 7.68 million pounds, down 44 percent from last year.

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Drought conditions have improved greatly in the western US. Heavy rain in the southern Plains this weekend may help OK and KS. http://droughtmonitor.unl.edu/